The income requirement is needed so that the bank knows you have enough income to pay off the credit card you are applying for. The minimum income you need to earn in order to be eligible can be anything from $10,000/year or $100,000/year, depending on your choice of bank and choice of card.

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Eligibility for a credit card also includes satisfying the bank that your financial position is secure. The purpose of this is to reassure the bank that you have sufficient income to pay back the credit they lend you. The bank needs to know that you fulfil the following criteria for financial position:

Earning enough income – proof includes bank statements or payslips

Steady job – proof includes employment details, such as length of employment and the contact number for your boss

Expenses and liabilities are not too big – proof includes statements for any outstanding debts and loans you owe, and the bank also wants a figure for your monthly expenses including rent, groceries, fuel, insurance, etc.

When you are planning to apply for a credit card, it is very important that you know you can meet these eligibility criteria beforehand. This is because if you apply for a credit card but you are not eligible and you are rejected, this is a black mark on your credit history report. This would make it more difficult to be approved when you apply for future credit cards or loans (see above regarding your credit rating).